INC NEWS - neighborhood revitalization fund (today's Herald-Sun)

[John Schelp]

"I support downtown... However, there's another part
of Durham we need to pay attention to."
--Cora Cole-McFadden

"I like what we're doing downtown, but we need to
start looking at the core neighborhoods." 
--Diane Catotti

"I think we've come to a point in our history as a
city where we need to pay more attention to our
neighborhood revitalization programs." 
--Howard Clement 


City Council ponders revitalization
Herald-Sun, 23 May 2006

Durham officials need to figure out a way to establish
the same sort of incentives program for "neighborhood
revitalization" projects that they've used since 2000
to promote investment downtown, two City Council
members said Monday. 

That would mean devoting about $1.6 million -- the
revenue raised by a penny on the city's property tax
rate -- to a fund that would subsidize projects in
five inner-city neighborhoods. 

While City Manager Patrick Baker has said the idea's
worth considering, last week he stopped short of
asking for the money his staff would need to implement
it in fiscal 2006-07. But on Monday, council members
Diane Catotti and Howard Clement both said elected
officials should think about launching the fund as
they ponder the city's next budget. 

"I think we've come to a point in our history as a
city where we need to pay more attention to our
neighborhood revitalization programs," Clement said.
"I hope we can find this $1.6 million." 

Catotti agreed. "I like what we're doing downtown, but
we need to start looking at the core neighborhoods,"
she said. 

Clement and Catotti offered their comments as the
council began a weeklong, department-by-department
review of Baker's 2006-07 budget request. The
discussion occurred as officials examined the budget
for the Office of Economic and Employment Development,
which administers most of the city's business
incentives programs. 

Monday's conversation was obviously influenced by
activists in the Fayetteville Street corridor and
other areas who allege that the council has been more
enthusiastic about investing in Durham's downtown than
it has been about putting money into the neighborhoods
that house large portions of the city's black
community. 

Six years ago, the city created a downtown
revitalization fund and stocked it with the revenue
raised by increasing the tax rate by a penny. Much of
the money helped underwrite the American Tobacco
project downtown next to the Durham Bulls Athletic
Park. 

The downtown fund endures, and in fiscal 2006-07 is
supposed to devote about $1.1 million to incentives.
Money from the fund also continues to underwrite debt
payments on one of the parking garages associated with
the American Tobacco project. 

The 2000 decision to create the downtown fund provoked
dissent of some of the leaders of the city's black
community, and while the criticism doesn't appear to
have had any repercussions at election time for Durham
officials, it has continued to this day. 

The question reared its head again this spring when
shopping-center owner Larry Hester and other members
of the Fayetteville Street Planning Group urged city
officials to devote the equivalent of 3 cents on the
tax rate -- $4.9 million at the current rate -- to
economic development projects in their neighborhood. 

Baker's suggestion of a penny's allocation would cover
a wider set of neighborhoods. In addition to the
Fayetteville Street corridor, he would target Old Five
Points, the area around the intersection of Angier
Avenue and Driver Street, the area around the
intersection of East Main Street and Alston Avenue,
and an area along West Chapel Hill Street. 

All five neighborhoods are already listed as potential
beneficiaries of at least some of the city's existing
incentive programs. 

Economic and Employment Development Director Alan
DeLisle noted that businesses in the Fayetteville
Street corridor already can qualify for most of the
department's programs, including one that provides
"downtown revitalization" loans of up to $250,000. 

Beyond the question of funding, officials have offered
few details about the potential neighborhood
revitalization fund. Baker and his staff haven't
spelled out who might qualify for funds or how the
program might be administered. 

And on Monday, council members didn't say whether
they'd be willing to finance it by adding a penny to
the tax increase Baker has requested for other
programs, 3.75 cents per $100 of assessed value. 

Members made it clear, however, that they'd like more
attention paid to the neighborhoods. 

Councilwoman Cora Cole-McFadden said she thinks the
Office of Economic and Employment Development's
personnel assignments are too heavily weighted toward
downtown projects. Councilman Mike Woodard asked
whether DeLisle's office could shift money from lesser
priorities into things like an effort to help
teenagers finds jobs. 

"Citizens are tired of us dragging our feet on these
issues," Cole-McFadden said. "I support downtown -- I
think it's fantastic. However, there's another part of
Durham we need to pay attention to."